Figure 13: Fashionable departmental stores
Korea’s Distribution Process
Korea’s economy is ranked among the best economies in the world. The country’s success in terms of economy is attributed to the relatively equal distribution of income and shared goals of its people (The World Bank, 2020b). However, in the 1980s, developments which included increases in land prices, expansion of equities market, and real estate, led to the concentration of wealth. Every region in Korea has its distribution process.
The Gimpo, Busan, and Incheon airports and ports are the entry points of most products. The products are later transported by railways and highways to major distribution centers in Daegu, Incheon, Busan, Seoul, and Gwangyang. The country has fifteen airports; eight are international, including Incheon International Airport (International Trade Administration, 2020). The eighty-eight international passenger airlines operate regularly between the Incheon International Airport and nations around the world.
Port of Busan, which is the world’s fifth-largest cargo port, is dominant in the economic growth of the Republic of Korea. It has led to the development of the Busan region by increasing its capita income. The same case applies to the Incheon Airport and the growth of the region’s economy (International Trade Administration, 2020). These major infrastructures play a significant role in the distribution of wealth in specific areas. Every area in the country has a source of income putting it in the country’s map.
The distribution functions and methods of intermediaries vary by product in the Korean economy. E-commerce platforms and discount stores have replaced the traditional retail distribution methods and networks which were mostly family-run markets, stores, and stalls. This made the government impose policies to enhance economic democratization by closing big discount chains every month. Major cities in Korea have fashionable and large department stores and boutiques. Thousands of third and second-tier retail stores are also every day in Korea, providing a formidable base for the distribution of goods and services across the country.
Page Author: Omar Touray
